Have you ever pondered with these questions even just once in your life? Why am I a failure when it comes to money even if I have been working half of my life? With my educational attainment, why am I still in debt? Or simply put why am I not yet rich? Surely, these questions will serve as eye openers not only for people who are in their mid-30’s or 40’s but also to those who are painstakingly working up to now. Even to those who are driving their butts off in making their business succeed. This article, will surely give you straight to the point reasons or factors why people like you are not yet rich. Read on the checklist below and start doing something now to achieve financial freedom.
1. You Don’t Have A Financial Plan
Stephen Covey’s first habit clearly reminds us that in anything that we do, there is a need to always “Begin with the End in Mind”. This is also true with finances and it is called financial planning. It is the simple formula of earnings minus savings equals spending. This is not rocket science to deal with and it is not yet too late to start a simple budget plan. So, in the next payday, try this and you are on your way to bounty.
2. You Are Living in Debt
The new meaning of spending habits nowadays is credit and loans. If trapped in this kind of lifestyle, there is no doubt that even until your deathbed, you are still being haunted by your debts. Remember that credit cards are just quick fixes to your financial concerns and most of the time is the culprit that influences you to spend beyond what you do not have. The solution, pay in cash or debit ALWAYS and you will never worry even a cent.
3. You Have a Lifestyle That is Way Beyond Your Means
This is like having delusion of grandeur. Others choose to live excessively even if given with practical choices. There are actually a lot of cheaper and better alternatives when it comes to living a comfortable life. From the basic needs of food, clothing and shelter, there are always the good deals or the best buys. It is just a matter of conditioning and priority. If still living in this delusion, one way to bring reality straight to you is to let you spend less with what you earn and you will never be miserable your whole life. This is a guarantee.
4. You Have no Emergency Fund
As they say, you can never predict what the future will give you. But if life is easy and comfortable at first, one does not usually anticipate the uncertainties of what lies ahead. Consequently, when the big bang hits, everything will be gone in just a blink of an eye. This is how important emergency funds are, it keeps the balance in your finances when challenges, difficulties or concerns arises that you have no control with such as illnesses, accidents and even fortuitous events. So, make use of the digital age and enroll your account in auto deposits (the easiest way to start saving). If you are lucky and life is still easy even until you age, this can be converted as your retirement fund.
5. You are an Impulsive Buyer
SALE in malls is the identified felon and perpetrator in this offense to your finances. Most of us and most of the time, we are always deceived by these marketing propagandas in department stores located all over the place. Then we end up buying the things we do not need and increase the clutter in our homes. The tricks are to practice delay gratification or think the practical way. Make life simple by keeping purchases to a minimum and look for better alternatives. There are a lot of choices around (I tell you).
6. You are too Generous (This is Bad When Done Often)
Being too vulnerable and too generous (especially with loved ones) when it comes to lending money is clearly not a good thing most of the time. This will not only ruin relationship but will be the cause of trouble in your finances eventually. If no back up plans, some end up in debts and others literally suffer for they have generously given what is supposed to be theirs. To avoid this, just simply learn to say NO and hopefully they understand what this means. This will save you for a lifetime.
7. You Lack Discipline and Self-Control
This sums up why everyone is still not rich even after twenty (20) years of hard work. Obviously, when there is spending opportunity, most often everyone will take it. But come to think of it as long as it is not a matter of life and death, you will still continue to live normally even if you cannot spend on those things. Just simply, step back and think not only twice but several times about its importance. If not in the list, there will always be other ways to fill in that want. The most significant thing is that you made your first step to be rich and that is through SAVING. You might want to look at the JARS system of saving.